As we work to bring even more value to our audience, we’ve made important changes for those who receive Ad Age with our compliments. As of November 15, 2016 we will no longer be offering full digital access to AdAge.com. However, we will continue to send you our industry-leading print issues focused on providing you with what you need to know to succeed.

If you’d like to continue your unlimited access to AdAge.com, we invite you to become a paid subscriber. Get the news, insights and tools that help you stay on top of what’s next.

McDonald's turns to OMD for global media

McDonald's move to consolidate its $1.2 billion global media assignment at Omnicom Group's OMD without a review is a blow to Publicis Groupe's media agencies, Starcom and Zenith Optimedia, which appear to be the main casualties of the change.

The consolidation, first reported on AdAge.com on Nov. 25, is widely expected to be announced today by Larry Light, McDonald's exec VP-global chief marketing officer. (AdAge.com QwikFIND aap19g)

At press time, neither McDonald's nor OMD had officially confirmed the move. However, several executives close to the talks said it was true, adding that the change is consistent with what McDonald's has attempted to do with media. Earlier this year, the company indicated that it was looking to standardize media buying and planning around the globe.

An executive familiar with the situation said OMD began putting the deal together in the spring. In the U.S., OMD currently handles all adult media, Hispanic and some online duties while Starcom handles youth media and other digital assignments.

retain some business

Despite the consolidation, Starcom might retain some local business, according to one executive. The consolidation is not expected to affect the 1,300 to 1,500 local franchisees, which use around 20 separate agencies.

A spokeswoman for OMD referred calls to the fast-food company. In a statement, issued on Nov. 25, McDonald's said: "You can expect to hear more from us on our new marketing leadership initiatives in the future. Until then, anything else is pure speculation." As of Nov. 26, the company did not have any change to that statement, but is widely expected to provide more details.

Dick Roth, president of Roth Associates, New York, who has helped marketers with global consolidations, speculated on McDonald's motives saying: "They are obviously looking at standardizing their communications practices across all geographies. The other reason for consolidation is the analytical tools. It is better to have one answer, or it can get confusing." Mr. Roth added that cost might have been another factor. "Why pay three to four different media agencies when you can have one? There's bound to be duplication."

McDonald's ranked eighteenth in Advertising Age's report on top global marketers, spending in 2002 was $1.187 billion worldwide, including $574 million in U.S., $353 million in Europe, and $181 million in Asia.